Stock recommendations for 24 July from MarketSmith India | Stock Market News
Stock market recap: Domestic equity benchmark indices, the Sensex and the Nifty 50, extended losses for the fourth consecutive session on Thursday, 23 July, amid a surge in crude oil prices driven by the West Asia conflict.
The Sensex dropped 364 points, or 0.47%, to end at 76,391.39, while the Nifty 50 finished at 23,869.60, down 127 points, or 0.53%.
Broader markets underperformed as the Nifty Midcap 100 and Nifty Smallcap 100 indices plunged 1% each.
In these four sessions, the Sensex has crashed 1,760 points, or 2.3%, while the NSE counterpart has shed 465 points, or almost 2%.
Two stock recommendations by MarketSmith India:
Buy: Ujjivan Small Finance Bank Ltd (current price: ₹69)
Suryoday Small Finance Bank Ltd (current price: ₹195)
Indian equity markets extended their losing streak for the fourth consecutive session on 23 July, with investors remaining cautious amid escalating West Asia conflict and surging crude oil prices.
Nifty 50 declined 126.65 points (0.53%) to close at 23,869.60, after trading in a range of 23,807.20–23,990.75, while Sensex also ended lower as risk sentiment remained subdued. Market breadth was decisively negative, with 1,155 stocks advancing, 2,101 declining, and 131 remaining unchanged, highlighting broad-based selling pressure across the market.
Sector-wise, Auto (+0.70%) emerged as the key outperformer, while Realty (-1.81%), Oil & Gas (-1.02%), PSU Bank (-1.00%), Private Bank (-0.77%), and Metal (-0.74%) led the declines. IT managed to limit losses, ending nearly flat. The weak advance-decline ratio indicates that selling was widespread despite resilience in select auto names.
Nifty 50 extended its corrective phase but held above the crucial 23,800 mark, indicating that buyers continue to defend this zone despite persistent selling pressure. The index also closed above its 50-DMA, suggesting that the medium-term structure remains intact even as near-term momentum has weakened.
The Relative Strength Index (RSI) has eased to around 45, slipping below its signal line, which indicates fading bullish momentum without yet entering oversold territory. Meanwhile, the MACD remains in positive territory but has witnessed a bearish crossover, with the histogram turning negative, signalling weakening momentum and an increase in short-term caution.
The index tested both its 50-DMA and the crucial 23,800 level during the session, but managed to close above these key technical markers, indicating that buying interest continues to emerge at lower levels. Going forward, 23,800 will remain a critical demand area and a key indicator of the market's near-term direction. If the index sustains above this level, the broader short-term trend is likely to remain constructive despite the ongoing corrective phase.
However, a decisive close below 23,800 could weaken market sentiment, invite fresh selling pressure, and increase the probability of an extended decline toward 23,600–23,500. On the upside, the index needs to reclaim and sustain above 24,400 to signal a meaningful revival in bullish momentum. A sustained move above this level would confirm a breakout from the recent consolidation range, improving the technical outlook and opening the door for a potential advance toward 24,500–24,600.
Nifty Bank dropped 534.80 points (-0.94%) on Thursday to settle at 56,592.00, underperforming broader benchmark indices. Heavy profit-taking across both private and public banking heavyweights dragged the sector, with HDFC Bank (-2.07%), State Bank of India (-1.48%), and Axis Bank leading the declines amid concerns over persistent margin pressures and rising global crude oil prices. On the flip side, Kotak Mahindra Bank (+1.03%) opposed the prevailing bearish trend to emerge as a notable top performer.
High geopolitical tensions in West Asia and a surge in Brent crude toward $97 per barrel triggered widespread risk aversion, eroding investor sentiment across interest-rate-sensitive financial counters.
The index remained under pressure and closed at 56,592, extending its recent corrective move with a bearish candlestick that reflects continued profit booking at higher levels. During the session, the index tested its July 8 swing low but managed to hold above it, indicating that buyers are still defending this important reference point. Notably, the index continues to trade above its 50- and 100-DMA, suggesting that the broader intermediate-term trend remains constructive despite the recent pullback.
The Relative Strength Index (RSI) has eased to around 44, slipping below its signal line, which reflects weakening bullish momentum without entering oversold territory. Meanwhile, the MACD has registered a bearish crossover, with the histogram remaining in negative territory, signalling fading upside momentum and increasing short-term caution.
On the downside, 56,500 remains the immediate support level, followed by a stronger cushion around 56,000. A sustained break below these levels would signal a deterioration in the technical structure and could accelerate selling pressure, exposing the index to a decline toward 55,000.
On the upside, 58,700 is likely to act as the immediate hurdle, and a decisive move above this level would be required to improve near-term sentiment and revive bullish momentum.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
MarketSmith India breaks through the market clutter to bring actionable investment ideas into focus. Our founder and legendary investor, William J. O'Neil, studied these trends and formulated the pathbreaking methodology, the CAN SLIM®. For over five decades now, MarketSmith has been successfully delivering great investment ideas based on its investment philosophy.
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